Contents of the volume

2018, Volume 71 - Issue 4

ISSN: 2499-8265
RSS feed citation: At RePEc
Publication date: 07 November 2018

IMPACT OF TRADE OPENNESS ON ECONOMIC GROWTH: EMPIRICAL EVIDENCE FROM SOUTH AFRICA

Malefa Rose Malefane, Nicholas M. Odhiambo

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TRADE OPENNESS AND ECONOMIC GROWTH IN SADC COUNTRIES

Clement Zibusiso Moyo, Hlalefang Khobai

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CAUSALITY TESTING BETWEEN TRADE OPENNESS, FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH: FRESH EVIDENCE FROM SUB-SAHARAN AFRICAN COUNTRIES

Olabode E. Olabisi, Evan Lau

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OUTPUT FLUCTUATIONS IN NIGERIA

Oluremi Ogun

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PUBLIC AND PRIVATE INVESTMENT AND ECONOMIC GROWTH IN ZAMBIA: A DYNAMIC APPROACH

Garikai Makuyana, Nicholas M. Odhiambo

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Genoa Chamber of Commerce
Economia Internazionale / International Economics

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Corresponding author

Garikai MAKUYANA, Department of Economics, University of South Africa, Pretoria, South Africa

Co-authors

Nicholas M. ODHIAMBO, Department of Economics, University of South Africa, Pretoria, South Africa

Public and Private Investment and Economic Growth in Zambia: A Dynamic Approach

Pages

503-526

Abstract

This paper investigated the dynamic contributions of public and private investment to economic growth in Zambia during the 1970 to 2014 period. In the analysis, the paper also estimated the important indirect contribution of public investment to economic growth through its crowding effect on private investment. The study employed the autoregressive distributed lag (ARDL) model in estimating the economic growth and private investment models.  The empirical evidence from the study shows that private investment contributes more to economic growth than public investment in Zambia in the short run and long run. In addition, gross public investment,  infrastructural and non-infrastructural public investment are found to crowd out private investment in the short run; while non-infrastructural public investment  had a long run crowding out effect on private investment. The results imply that the long-run contributions of both private and public investment to economic growth in Zambia can be improved by raising the infrastructural public investment.

JEL classification

E22, O47, P12

Keywords

Zambia, Public Investment, Private Investment, Economic Growth, Crowding in Effect, Crowding out Effect, ARDL Model

Index

  1. Introduction
  2. Dynamics of public and private investment and economic growth in Zambia: 1970 to 2014
  3. Literature review
  4. Methodology and empirical analysis
  5. Conclusion

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